Do I Need Aircraft Liability Insurance?

Aircraft liability insurance is essential for anyone involved in aviation—pilots, aircraft owners, or operators. Insurance is not a one-size-fits-all situation. Aircraft Liability Insurance, or aviation insurance more broadly, is specifically designed to protect against risks in the aviation industry. Do you need aircraft liability insurance? Learn about why aircraft liability insurance is important and who might need it.

Common Aviation Risks

Aviation is vulnerable to various risks that warrant protection:

• Accidents and Collisions: The most significant risk is the potential for accidents during takeoff, flight, or landing. Collisions with other aircraft, birds, or ground obstacles are also possible.
• Property Damage: An aircraft might unintentionally damage property on the ground, such as buildings, vehicles, or personal belongings.
• Injury to Third Parties: A crash or malfunction could injure people on the ground, leading to costly lawsuits.
• Pilot Error: Human error remains a leading cause of aviation accidents. Mistakes in judgment, navigation, or handling can have dire consequences.
• Mechanical Failures: Despite rigorous maintenance protocols, mechanical failures can occur, posing risks to the aircraft and its surroundings.

These risks can create financial devastation from accidents or claims—aircraft liability insurance safeguards against this.

What Does Aviation Insurance Cover?

Aviation insurance protects against the inherent risks of flying and helps mitigate financial losses from accidents, damage to third parties, and other liabilities. Aviation insurance typically covers various liabilities and losses involved in the aviation sector. Aviation presents its own unique set of risks, and therefore, comprehensive cover should consider the following:

• Aviation Liability Insurance: This type protects against third-party claims from aircraft-related incidents. Such incidents may include injuries sustained by third parties affected by an aircraft accident or damage to third-party property.
• Aircraft Hull Insurance: This protects against damage to the aircraft from accidents, theft, or other incidents. Hull coverage can be all-risk or limited to specific perils.
• Ancillary Risks Coverage: This protects aviation products liability, hangar keeper’s liability, and non-owned aircraft liability.

Who Needs Aircraft Liability Insurance?

Aircraft liability insurance is essential for various stakeholders in the aviation sector, including:

• Aircraft Owners: Whether you own a private plane or a commercial fleet, insurance protects you against potential liabilities.
• Pilots: Individual pilots, especially those who operate their aircraft or rent planes, should carry insurance to mitigate risks associated with their activities.
• Flight Schools: Schools providing pilot training need insurance to cover their operations, including the aircraft and students involved.
• Charter Services: Companies offering air transportation services require comprehensive insurance to cover passenger and cargo transport risks.
• Aerial Application Businesses: Those involved in crop-dusting or other aerial applications face unique risks and should have appropriate coverage.

Anyone engaged in aviation activities should consider insurance to protect their financial interests and comply with legal requirements. Get advice as to what insurance you might need.

Aviation insurance protects against claims related specifically to aviation and potentially not covered by other standardised insurance policies. Because Aviation is at risk of significant financial burden should something very unfortunate occur, it is important to understand what insurance you need and adequately cover yourself.

How Much Does Aircraft Liability Insurance Cost?

The cost of aviation insurance can vary significantly based on several factors, including:

• Type of Aircraft: The aircraft’s make, model, and age can influence rates; larger or more complex aircraft typically command higher premiums.
• Pilot Experience: Insurers consider the pilot’s experience and training. Those with more flight hours and certifications often benefit from lower rates.
• Usage: The intended use of the aircraft—whether personal, instructional, commercial, or agricultural—affects premiums. Commercial operations usually entail higher risks and, therefore, higher rates.
• Coverage Amount: Desired coverage limits play a crucial role; higher limits generally lead to higher premiums.
• Location: The geographical area where the aircraft operates can impact rates, as regions with higher accident rates or dense populations may lead to increased premiums.

Trust Greenlight Insurance Brokers to Organise your Aviation Insurance

Aircraft Liability Insurance is essential. Greenlight Insurance Brokers specialises in providing tailored and comprehensive insurance to meet your needs in the aviation sector. Our NZ insurance brokers work for you, offering the best tailored coverage options, competitive rates, and specialists who understand the intricacies of aviation risks. We make sure that you and your specific assets are effectively protected.

Don’t leave your safety and financial security to chance—contact Greenlight Insurance Brokers today to explore your aviation insurance options and secure the protection you need to fly with confidence.